TKO Group Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, formed from the merger of Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), experienced a substantial increase in revenue, with total revenue for the three months reaching $681.3 million, a 52% increase from $449.1 million in the same period of 2023. For the nine months, revenue surged to $2.16 billion, up 104% from $1.06 billion year-over-year.
The revenue growth was primarily driven by WWE's performance, which generated $326.3 million in the third quarter, compared to just $51.5 million in the same quarter of the previous year. WWE's revenue was bolstered by $190.1 million in media rights and content revenue. In contrast, UFC's revenue for the same quarter decreased to $354.9 million, down 11% from $397.5 million, attributed to lower media rights and content revenue due to fewer events.
Operating expenses also rose significantly, with total operating expenses for the three months ending September 30, 2024, amounting to $544.9 million, compared to $355.2 million in the prior year. This increase was reflected in both segments, with UFC's direct operating costs decreasing slightly while WWE's costs surged due to increased events and personnel expenses.
Despite the revenue growth, TKO reported a net income of $57.7 million for the third quarter, up from $22.0 million in the same period last year. However, for the nine months ended September 30, 2024, the company recorded a net loss of $41.1 million, a stark contrast to a net income of $191.8 million in the previous year. This decline was influenced by substantial legal costs related to UFC antitrust lawsuits, which amounted to $375.0 million for the nine-month period.
The company’s cash position improved significantly, with cash and cash equivalents increasing to $457.4 million as of September 30, 2024, compared to $235.8 million at the end of 2023. TKO's total current assets also rose to $893.8 million, reflecting a strong liquidity position.
Strategically, TKO announced a share repurchase program of up to $2.0 billion and plans to initiate quarterly cash dividends starting March 31, 2025. Additionally, the company is set to acquire Endeavor's Professional Bull Riders, On Location, and IMG businesses for $3.25 billion, expected to close in the first half of 2025.
About TKO Group Holdings, Inc.
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